Prime Cabinet secretary Musalia Mudavadi has moved to defend the performance of Kenya Kwanza administration, as the new regime’s 100 days in office fast approaches.
Mudavadi assured Kenyans “things will ultimately shape up step-by-step” even as the country continues to face a biting drought, while grappling with a huge public debt.
He said austerity measures put in place will not to hurt the people further but help in cleaning the mess inherited from the previous government.
“You cannot sincerely attribute the current pain Kenyans are going through to this government,” Mudavadi said.
Already, there has been an outcry from the opposition leaders who claim that taxation proposals being made by President William Ruto’s government are punitive.
Azimio leader Raila Odinga said Kenyans should not be over-taxed as they cannot afford the heavy taxes.
“As far as I am aware, the Kenya Kwanza government hasn’t made any taxation proposals yet. When such proposals will be made, they must be approved or rejected by Parliament,” Mudavadi said.
“I suspect the opposition leaders are confusing existing punitive taxation measures put in place by the previous regime, with what might come from our new government in the form a supplementary budget," he said.
"They should not superimpose issues. We are trying to cure a malady that pre-existed us.”
In an interview with the Star, Mudavadi said the first Cabinet meeting on November 10 discussed a roadmap on what is to be done moving forward.
“Work has begun since the executive arm of government has hit the ground running, laying the foundation towards economic recovery, job creation and food security,” he said.
Mudavadi took issue with the opposition for constantly accusing the Kenya Kwanza administration of failing to deliver on its promises.
“You cannot contrast similar things, you compare them. Therefore, I don’t know what informs anyone that Kenya Kwanza government will not surpass the Narc achievements 20 years ago given our realistic plan,” he said.
The Prime Cabinet Secretary also said the government will be developing several measures including floating bonds to enable payment of pending bills without relying solely on revenue from taxation.
He said the target is to make sure that investment opportunities also stretch to the private sector.
On opposition’s claim that NSSF and NHIF are mismanaged and it will not make sense to pump more money into the two agencies, Mudavadi said reforms will be undertaken in the institutions.
He put into perspective that a country that saves more is assured of more domestic resources to guarantee a better post-pension life for its citizens.
“The government is encouraging working Kenyans to save enough through NSSF to insure themselves in retirement. The final beneficiary is that retiring Kenyan worker," he said.
"We are yet to understand why the opposition is opposed to this valuable proposal. What is their remedy then?”
Mudavadi added that plans will be put in place to expand the tax base thus ensure more revenue is collected without necessarily increasing taxes on Kenyans and businesses.
He said the Hustler Fund, which will provide collateral-free lending to Medium and Small Enterprises at single-digit rates will be launched shortly.
"It will provide relief to especially micro-enterprises that currently borrow from shylocks and digital lending platforms, which charge interest in excess of 3,600 per cent per annum,” Mudavadi said.
“Just to show Kenyans that we mean business, we have seen to it that Fuliza rates are cut by half, with more reductions on interest rates and penalties further envisaged,” he added.
